Federal changes to watch for in 2009-2010:

1. Raise income tax top bracket to 39.5% and dividends and long term capital gains from 15% to ordinary rates (Campaign Promise)
   
   
2. Middle class tax cut for 95% of taxpayers- Refunds to people who don’t pay taxes is income redistribution. How much and to who? What will be impact? (Campaign Promise)
   
   
3. Bush tax cuts expire 2010. Will they be renewed? (See other web page of Bush Tax Cuts)
   
   
4. Gas tax- will the federal gas tax be increased to pay for energy alternatives?
   
   
5. Energy tax- Carbon trade off credits; cap & trade scheme. “Global warming” problem is now called “climate change” problem. Will there be an energy tax or will energy costs significantly increase due to supply shortages?
   
   
6. Health care- National health care may be mandatory. What will be the tax implications? Raise payroll tax limit on upper wage earners? (Campaign Promise)
   
   
7. Family Leave Act changes- mandatory 7 days sick pay paid by employers > 15 employees. Companies with 50 or more employees can take up to 12 weeks of unpaid leave. Proposed new law reduces company size to 25 employees; States may mandate paid leave up to 6 weeks with federal incentives.
   
   
8. 401K Changes- Some Democrats on Capital Hill would recommend ending tax deductible contributions to retirement plans.
   
   
9. Estate Tax- current exemptions expire December 31, 2010. What will be new exemption?
   
   
10. Minimum wage increases- Free trade protectionism / Union card check. What will be economic impact?
    
    
11. Economy Bailout- Record deficits/Record National Debt/ Stimulus Bill – Lehman Brothers, AIG, Citigroup, GM, Bear Stearns, Wachovia. Who’s next?
    
    
12. Fannie Mae & Freddie Mac and Community Reinvestment Act. Where’s the oversight of the oversight? Is the Federal Government causing or enabling financial crisis?
    
    

For more information and tax strategies, e-mail or call 225-292-7434 or 985-674-9092.